Thursday, May 29, 2008

Growth in house prices will slow as housing market becomes more balancedFor 2008, the demand will moderate.Existing home sales, as measured bythe Multiple Listing service (MLS®),are expected to decrease by 8.5 percent to 475,900 units. In 2009, thetrend will be similar with anotherdecrease to 465,000 units (-2.3 percent). MLS® sales will step back givena moderating demand due to risingmortgage carrying costs.Despite a slowdown of MLS® salesand a general ease on the market,demand remains strong by historicalstandards. For 2008 and 2009,growth in the MLS® average price willremain above inflation. Prices willreach $323,000 (+5.1 per cent) in2008 and $333,500 (+3.3 per cent)in 2009.